The Freightos Baltic Indexes (FBX) Update (W26 2018)

 

The catalysts are seasonal changes in airplane assignments, looming European factory closures, and Amazon Prime Day. Meanwhile, ocean freight rates are now static when compared to last week and last year’s prices.

 

Europe-US Air Freight Rates are at Bargain Prices (For Now): Each summer, airlines move larger planes to Europe-US to capitalize on the seasonal increase in passenger movements. This has a knock-on effect of pushing air freight capacity well above demand. That’s why, along with additional charter flights in the region, Europe-US average general rates decreased by 33% over the past two weeks. They will go up again through July as shippers jostle to get their shipments out before the big factory close-down in Europe. Prices will fall away again in August.

 

Amazon Day Hitting China-US Air Freight Rates: Amazon Prime Day officially starts on July 16. China-US express rates jumped up $1.00 last week. Expect further increases in the next two weeks.

 

Ocean Freight Rates Hit Summer Doldrums: Ocean freight rates on the key lanes seasonally ease after peak season/Chinese New Year and firm again coming into summer. This year was no exception. The Freightos Baltic Global Container Index peaked Feb 18 at $1,323, bottomed out April 8 at $1,027, and climbed back up to $1,306 by July 1. As the above table show, right now, rates are fairly static compared, when compared week on week and year on year.